Sri Lanka foreign reserves could fall nearly US$3 billion short of IMF projections, former minister Bandula Gunawardena alleges.
Former Minister Bandula Gunawardena has alleged that Sri Lanka foreign reserves are facing a significant shortfall, claiming the current government is attempting to conceal the true state of the country’s foreign exchange position from the public.
Speaking on the country’s external finances, Gunawardena said Sri Lanka’s net foreign assets had plunged to approximately negative US$3 billion during the height of the economic crisis. He noted that agreements reached with the International Monetary Fund (IMF) and the country’s debt restructuring programme under the administration of former President Ranil Wickremesinghe helped rebuild reserves.
According to Gunawardena, those measures enabled Sri Lanka’s official foreign reserves to rise to US$6.1 billion by the end of 2024.
Sri Lanka Foreign Reserves Trail IMF Target
Gunawardena claimed that reserve growth has slowed considerably under the current administration. He alleged that foreign reserves have increased by only US$0.4 billion, bringing the country’s reserves to approximately US$6.4 billion.
He contrasted that figure with the IMF’s projected reserve target of US$9.27 billion by the end of this year, arguing that Sri Lanka is facing a reserve gap of nearly US$3 billion.
According to the former minister, such a shortfall raises concerns about the country’s external financial stability and its ability to strengthen foreign currency buffers.
Imports, Rupee Pressure and Allegations
Gunawardena also warned that imports are growing faster than export earnings, increasing pressure on Sri Lanka’s balance of payments.
He alleged that if the current trend continues, the Sri Lankan rupee could depreciate to around Rs. 350 against the US dollar.
The former minister further claimed that senior officials at the Ministry of Finance are not fully informing the President about the seriousness of the country’s financial situation. He alleged that key details regarding the foreign reserve position and the wider economic outlook are being withheld.
His remarks come amid continued debate over Sri Lanka’s economic recovery, reserve accumulation targets and the implementation of reforms agreed under the IMF-supported programme.
